The Suns give up their draft pick in an effort to unload the $35.3 million on Warren's remaining three-year contract.
Warren fills a position of need as a floor spacer from either forward spot and could be a viable replacement if Bojan Bogdanovic walks in free agency.
The move gives the Suns approximately $21 million in free space over the summer. The Pacers still have close to $31 million available without including Bogdanovic's cap hold, according to ESPN's Bobby Marks.
Warren, 25, averaged 18 points and four rebounds in 43 games last season.